StandardAero Announces Pricing of its Upsized Initial Public Offering

Rhea-AI Summary

StandardAero announced the pricing of its upsized initial public offering (IPO) of 60,000,000 shares of common stock at $24.00 per share. The offering includes 53,250,000 shares from StandardAero and 6,750,000 from existing stockholders. Trading is expected to begin on October 2, 2024, on the New York Stock Exchange under the symbol 'SARO'. The offering is set to close on October 3, 2024, subject to customary conditions.

The IPO size was increased from the previously announced 46,500,000 shares. Selling stockholders granted underwriters a 30-day option to purchase up to 9,000,000 additional shares. Lead book-running managers include J.P. Morgan, Morgan Stanley, BofA Securities, UBS Investment Bank, Jefferies, and RBC Capital Markets. The offering will be made only through a prospectus, with copies available from J.P. Morgan Securities and Morgan Stanley & Co.

Positive

• Upsized IPO from 46,500,000 to 60,000,000 shares, indicating strong demand
• Expected listing on the New York Stock Exchange, potentially increasing visibility and liquidity
• Involvement of major financial institutions as lead book-running managers

Negative

• Potential dilution for existing shareholders due to the large number of new shares being issued
• Market risks associated with the IPO process and initial stock price volatility

Insights

Financial Analyst

StandardAero's upsized IPO pricing at $24.00 per share signals strong market demand. The offering of 60 million shares, increased from 46.5 million, could raise approximately $1.44 billion. This substantial capital infusion will likely bolster the company's financial position and fuel growth initiatives.

The inclusion of shares from existing stockholders suggests confidence in the company's valuation. The overallotment option for an additional 9 million shares could potentially increase total proceeds to about $1.66 billion if fully exercised.

With a diverse underwriting syndicate led by major banks, the IPO appears well-supported. StandardAero's listing on the NYSE under "SARO" will provide increased visibility and liquidity for investors. The aerospace industry's recovery post-pandemic makes this IPO timing potentially advantageous for both the company and investors.

Market Research Analyst

StandardAero's IPO represents a significant event in the aerospace maintenance, repair and overhaul (MRO) sector. The upsized offering and pricing suggest strong investor appetite, potentially indicating positive sentiment towards the industry's growth prospects.

The company's diverse service portfolio across commercial, military and business aviation positions it well in a recovering market. The $24 per share price implies a substantial market capitalization, likely placing StandardAero among the larger public companies in its sector.

Investor interest may be driven by expected increases in air travel and defense spending. The IPO's success could pave the way for other aerospace service providers to consider going public, potentially leading to increased M&A activity and industry consolidation.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- StandardAero, Inc. (“StandardAero”) announced today the pricing of its initial public offering of 60,000,000 shares of its common stock, at a public offering price of $24.00 per share. The shares include 53,250,000 shares to be issued and sold by StandardAero and 6,750,000 shares to be sold by existing stockholders. The size of the offering was upsized from the previously announced 46,500,000 shares. Shares of StandardAero common stock are expected to begin trading on The New York Stock Exchange under the symbol "SARO" on October 2, 2024. The offering is expected to close on October 3, 2024, subject to the satisfaction of customary closing conditions.

In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an aggregate of 9,000,000 additional shares of common stock from them at the initial public offering price, less underwriting discounts and commissions, upsized from the previously announced 30-day option to purchase up to an aggregate of 6,975,000 additional shares of common stock.

J.P. Morgan, Morgan Stanley (in alphabetical order), BofA Securities, UBS Investment Bank, Jefferies and RBC Capital Markets are acting as lead book-running managers for the proposed offering. Carlyle, CIBC Capital Markets, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Societe Generale and Wolfe | Nomura Alliance are acting as joint book-running managers, and Citizens JMP Securities, LLC, Macquarie Capital, Santander, AmeriVet Securities, Inc. and Drexel Hamilton, LLC are acting as co-managers for the offering.

A registration statement on Form S-1 relating to these securities was declared effective by the Securities and Exchange Commission on October 1, 2024. The offering is being made only by means of a prospectus. The offering will be made only by means of a prospectus. Copies of the final prospectus relating to this offering, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com and Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, NY 10014.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About StandardAero

StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is majority owned by global investment firm Carlyle (NASDAQ: CG).

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements, including with respect to the closing of the initial public offering. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause StandardAero’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, StandardAero assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001624818/en/

Investors:

investors@StandardAero.com

(480) 377-3142

Alex Trapp

Alex.Trapp@StandardAero.com

Media:

Kyle Hultquist

Kyle.Hultquist@StandardAero.com

Source: StandardAero, Inc.

FAQ

What is the IPO price for StandardAero (SARO) stock?

StandardAero (SARO) has priced its initial public offering at $24.00 per share.

How many shares is StandardAero (SARO) offering in its IPO?

StandardAero (SARO) is offering a total of 60,000,000 shares in its upsized IPO, including 53,250,000 new shares and 6,750,000 from existing stockholders.

When will StandardAero (SARO) stock begin trading?

StandardAero (SARO) stock is expected to begin trading on the New York Stock Exchange on October 2, 2024.

What is the ticker symbol for StandardAero's stock?

StandardAero's stock will trade under the ticker symbol 'SARO' on the New York Stock Exchange.